Weekly Update: 7th of August
What happened between the 1st and the 7th of August?
- The SEC launches “Project Crypto” to regulate digital assets through clear guidelines, focusing on innovation, oversight, and institutional market integration. Read more
- The CFTC is developing a framework for spot crypto trading on regulated exchanges to ensure integrity and broaden institutional access to digital assets. Read more
- The FCA will allow retail access to crypto ETNs from October, signaling the UK’s commitment to regulated access for individual investors. Read more
- Tornado Cash developer Roman Storm was found guilty of illegal money transmission, highlighting legal risks for open-source developers in crypto. Read more
SEC launches strategic “Project Crypto” in U.S.
The U.S. Securities and Exchange Commission (SEC) has launched “Project Crypto,” a broad initiative aimed at modernizing digital asset regulation. The program targets clearer guidelines around token classification, tokenomics transparency, and integration with traditional financial markets. According to insiders, the goal is not to suppress innovation but to embrace it within a robust legal framework.
The initiative also covers oversight of DeFi protocols and tokenized assets. Institutional investors welcome this move as a necessary step toward regulatory certainty in the American crypto market. The timing is strategic, ahead of potential policy shifts under a new administration. With “Project Crypto,” the SEC positions itself as an active participant in the transition to regulated digital infrastructure.
CFTC prepares for regulated crypto spot trading
The U.S. Commodity Futures Trading Commission (CFTC) is developing a framework to enable spot crypto trading on regulated futures exchanges. This would grant investors direct access to underlying crypto assets like Bitcoin and Ethereum via trusted derivatives platforms. The initiative responds to growing institutional demand for secure, regulated market access.
According to CFTC sources, the effort aims to ensure market integrity and foster fair competition. This proposed reform is seen as a pivotal step in the broader institutionalization of digital assets. If implemented, it could mark a turning point for the U.S. crypto landscape, establishing a clearer legal pathway for institutional engagement.
UK retail investors gain access to crypto ETNs
The UK’s Financial Conduct Authority (FCA) has announced that, starting October 8, retail investors will be permitted to trade regulated crypto ETNs on the London Stock Exchange. This lifts a longstanding ban. The move is seen as a significant shift in UK crypto policy, reflecting rising interest among high-net-worth individuals and family offices. Only FCA-approved ETNs with institutional safeguards will be eligible.
The decision aligns with the UK’s ambition to become a leading regulated crypto hub in Europe. It sends a strong signal that the UK is embracing innovation under supervision and reinforces confidence in the regulatory trajectory of digital assets.
Tornado Cash developer found guilty in U.S. trial
Roman Storm, co-founder of crypto mixer Tornado Cash, has been found guilty in the U.S. for operating an unlicensed money transmission service. While the jury did not reach a verdict on additional charges such as money laundering and sanctions violations, this conviction marks a major legal precedent. Tornado Cash has been used both for privacy-preserving transactions and illicit fund flows, including those linked to North Korean hacking groups.
The ruling raises concerns in the developer community about legal accountability for open-source software. Storm remains free on a $2 million bond but is expected to appeal. The case reopens discussions around regulating privacy-focused crypto tools.
In other digital assets news
- The SEC clarified that liquid staking protocols do not fall under securities regulation.
- The amount of Ethereum staked has reached a new all-time high, while transaction volume also climbs to record levels.
- Crypto ETFs experience consecutive days of outflows amid a broader market risk-off sentiment.
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